PETRONAS to Supply Gas to Sarawak Petchem Sdn Bhd and Sarawak Energy Berhad

BINTULU, 23 August 2022 – PETRONAS kicked off the development of a gas delivery facility at Tanjung Kidurong, Bintulu, that will, from next year, supply natural gas to Sarawak Petchem Sdn Bhd (SPSB) and Sarawak Energy Berhad (SEB).

The ground-breaking ceremony for the Bintulu Additional Gas Sales Facility (BAGSF-2), was officiated yesterday by Premier of Sarawak, YAB Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg. Also present were PETRONAS Chairman Tan Sri Dato’ Seri Mohd Bakke Salleh, PETRONAS President and Group CEO Datuk Tengku Muhammad Taufik, Deputy Premiers of Sarawak, YB Datuk Amar Haji Awang Tengah Ali Hasan and YB Dato Sri Dr Sim Kui Hian, State Ministers and Deputy Ministers.

BAGSF-2 is designed with a capacity to deliver up to 390 million standard cubic feet of gas per day (MMscfd). The facility will occupy 70 hectares of land and will have its own dedicated administration building, processing area, metering stations and utilities. The facility will deliver 160 MMscfd of natural gas to a Sarawak Government-owned methanol plant, which will be operated by SPSB. The methanol plant is currently under construction at Tanjung Kidurong. Another 70 MMscfd will be supplied to Sarawak Energy Bhd’s Tanjung Kidurong Power plant. The remaining capacity will allow the facility to supply future customers.

Datuk Tengku Taufik said, “The development of BAGSF-2 marks another significant milestone in our commitment to working together with the Sarawak State Government for the sustainable growth of its oil and gas industry. Once onstream, BAGSF-2 will create new value-adding activities for Sarawak’s hydrocarbon resources, supporting the State’s aspiration for its petrochemicals and domestic power industry. We look forward to building on the strong partnership with the State Government in developing Sarawak’s resources for the mutual prosperity of the State and the nation.”

In 2016, PETRONAS signed an agreement with Sarawak Government to supply a total of 450 MMscfd of natural gas to Sarawak for power generation and state-owned petrochemical industries. In 2021, PETRONAS signed another Memorandum of Understanding (MoU) to increase gas supply to 1,200 MMscfd to Sarawak.